Why 2023 Is the Year to Upgrade to a Heat Pump in CA

Heat Pumps

You may only need to upgrade your home heating and cooling system a few times in your lifetime, but with the right timing, you can save money, increase your home’s comfort, and lower your home’s carbon footprint—all at the same time!

Heat pumps bring high-efficiency heating and cooling to homes and buildings throughout California and are a crucial part of electrifying a home. Here is what you need to know about upgrading to a heat pump or ductless mini-split in 2023.

Why Install Heat Pumps?

Heat pump technology can serve as a single room add-on to an existing HVAC system or a whole-home heating and cooling system. All heat pumps, including ducted systems and ductless mini-splits, use less energy than traditional furnaces, boilers, or strip heating systems. With both heating and cooling settings, you can use heat pumps year-round to keep your California home comfortable.

When properly installed, heat pumps provide several benefits, including:

  • Quiet and efficient operation
  • A reduction in your carbon footprint
  • Lower heating and cooling costs
  • All-electric operation (which means you can power them with solar)
  • Improved home comfort

Do Heat Pumps Work Well in California? 

In short: Yes! 

Most of California’s climate is moderate, making it an ideal environment for heat pumps. Heat pumps work by transferring heat from one place to another. During the summer, a heat pump will transfer heat out of your home to keep it cool; and, during the winter, it will transfer heat into your home to increase the temperature. 

Although heat pump technology has made significant advancements, heat pumps aren’t as efficient when it gets too cold outside (not enough heat in the air = not enough heat to transfer indoors to heat your home). Since most of California experiences mild winters, heat pumps work extraordinarily well here! 

Why Switch to a Heat Pump System Now?

Wondering why 2023 is a great year for heat pump installation? For starters, homeowners in California now have the Clean Energy Connection, a free online directory of vetted California contractors who provide clean energy services for homeowners interested in home electrification and energy efficiency upgrades like heat pumps. The Clean Energy Connection helps homeowners easily find the best heat pump contractors in their area.

Additionally, there are an increasing number of new incentives available to reduce the cost of a heat pump upgrade, including new energy efficiency incentives for 2023:

IRA Tax Credit Changes

When the Inflation Reduction Act was signed into law in 2022, it increased incentives for homeowners looking to make eco-friendly upgrades to their home, like the 25C tax credit. Now, homeowners will be able to claim a 30% tax credit on a number of different energy efficiency upgrades, including up to $2,000 for heat pump or heat pump water heater installation, $1,200 for insulation and air sealing materials, and more.

The IRA also increased the federal solar tax credit back up to 30%, allowing homeowners to maximize their savings when installing solar panels or adding solar batteries to their homes.

New IRA Rebates Should Be Available Soon!

In addition to improved tax credits, the Inflation Reduction Act has also created several new rebate programs. These programs aren’t available now, but we’re hoping that California will announce details soon and that households will be able to take advantage by the end of this year. Rebate amounts vary by services, but can go as high as $14,000 for income-eligible households and up to $4,000 for anyone, regardless of income!

California Utility Heat Pump Incentives

Many utility companies also offer savings when upgrading to energy-efficient equipment like heat pumps. Incentives range from hundreds of dollars to thousands for heat pump installation. For example, the Los Angeles Department of Water & Power offers an incentive of $100 per ton, SMUD offers up to $3,000 for heat pump HVAC replacement, and Roseville Electric offers a $350 incentive for ductless mini-split installation. Search for incentives by zip code using The Switch Is On rebate finder.

Find a Quality California Contractor with the Clean Energy Connection

If you are looking for a trusted California heat pump company to help you upgrade to all-electric heating and cooling this year, the Clean Energy Connection makes it easy.

Contractors in our directory have passed our vetting process, including license verification and reference checks, and we perform ongoing customer satisfaction surveys. You can sort contractors by name, location, services offered, and even locally-available incentives and rebates. Comparing all of the different companies and available incentives in California can be difficult on your own–if not downright overwhelming. So, if you’re looking for an installer for a mini-split or a heat pump water heater, turn to the Clean Energy Connection to simplify the process.

Find a contractor you can trust for your heat pump upgrade in 2023. Search our directory now.